VIVERACQUA HYDROBOND 4

Project to support small to medium water utilities through innovative structured financing in the Italian region of Veneto.

The project regards the 2021-2024 water and wastewater investment programme of six operators in the Veneto Region in Italy. The investment programmes of the operators are based on Master Plans agreed by the operators with the local regulator. The investment requirements, including mainly water treatment, distribution, wastewater collection and treatment, are aimed at the upkeep of efficient and sustainable water and wastewater services and compliance with the Urban Waste Water Treatment Directive 91/271/EEC and the Water Framework Directive 2000/60/EC, as embodied in the National legislation and the Regional Water Resources Protections Plans.

The project supports investments in wastewater infrastructure by various utilities providing Integrated Water Services in the Veneto Region, Italy. It ensures compliance with key European regulations in the water sector, and improves the coverage and quality of water and wastewater services. The project contributes to the Bank's policy objectives of Sustainable Energy and Natural Resources as well as Climate Action and Environmental Sustainability. It addresses a number of market failures through positive externalities in the form of environmental and public health benefits, notably improved quality of recipient waters and reduced greenhouse gas emissions from wastewater infrastructure. These benefits are not reflected in market prices and would not be realised to the same extent without public intervention. Furthermore, the project addresses a chronic investment gap in water services in Italy and provides long-term finance at attractive terms compared to commercial banking funding, through an innovative product (securitisation of a mini-bonds), fostering the creation of a an alternative way to access traditional EIB financing. EIB's participation as an anchor investor facilitates the crowding-in of other investors and positively impacts the utilities' stability and diversification of their source of financing. 

The investments are expected to have positive net environmental and social impacts, considering their focus on compliance with amongst others the Urban Waste Water Treatment Directive 91/271/EC, the Water Framework Directive 2000/60/EC, and their contributions to resource efficiency from efficiency improvements. Where and if applicable, the requirements of the Environmental Impact Assessment Directive 2014/52/EU amending the Directive 2011/92/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be verified during appraisal.

The Bank will require the utility companies to ensure that contracts for implementation of the project have been or will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/23/EU and/or 2014/24/EU and/or 2014/25/EU, where applicable, as well as Directive 92/13/EEC and Directive 89/665/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.